Article by: E. Bruce Mumford
Published by: 2100 Xenon Group
Date: 17 Dec 2010
“An investor considering an allocation to managed futures recently asked me if the Lehman Brothers’ bankruptcy and the collapse of Bernard Madoff’s fraudulent investment firm had been good or bad for the futures industry. There is no single or easy answer to that question.
“In 2008, these events shocked the global markets in different ways. Lehman and Madoff were “bad” in terms of the damage they inflicted on people’s portfolios and how they eroded investor confidence. The fallout from these losses will likely be felt for years to come.
“The important lesson learned—namely the need for a well-diversified, transparent, reasonably liquid portfolio—is the “good” thing that sprang from these events and the market turmoil of recent years.”
Full article (PDF): Link